82R12497 YDB-F
By: Thompson H.B. No. 3575
A BILL TO BE ENTITLED
AN ACT
relating to the operation of casino gaming in this state by
federally recognized Indian tribes on certain land; providing
penalties.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subtitle A, Title 13, Occupations Code, is
amended by adding Chapter 2004 to read as follows:
CHAPTER 2004. CASINO GAMING BY
FEDERALLY RECOGNIZED INDIAN TRIBES
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 2004.001. DEFINITIONS. In this chapter:
(1) "Casino game" means any game of chance, including
a game of chance in which the outcome may be partially determined by
skill or ability, that involves the making of a bet, as defined by
Section 47.01, Penal Code. The term does not include:
(A) conduct authorized under Chapters 2001 and
2002;
(B) wagering on a horse or greyhound race
authorized under the Texas Racing Act (Article 179e, Vernon's Texas
Civil Statutes);
(C) gambling permitted under Chapter 47, Penal
Code; or
(D) conduct authorized under Chapter 466,
Government Code.
(2) "Casino gaming" means the conduct of casino games
authorized under this chapter.
(3) "Casino gaming manager" means a person certified
under this chapter to manage casino gaming operations at a location
authorized under this chapter to conduct casino gaming in this
state.
(4) "Commission" means the Texas Lottery Commission.
(5) "Executive director" means the executive director
of the commission.
(6) "Gaming vendor" means a person licensed under this
chapter to provide, maintain, manufacture, distribute, sell, or
lease casino gaming equipment and services to a person authorized
to operate casino gaming in this state.
(7) "Indian lands" means lands on which a federally
recognized Indian tribe may be authorized to conduct casino gaming
under Section 47a, Article III, Texas Constitution.
Sec. 2004.002. APPLICABILITY OF FEDERAL LAW. All shipments
of casino gaming equipment and devices into, out of, or within this
state in connection with casino gaming are legal shipments of the
devices and are exempt from the provisions of 15 U.S.C. Sections
1171-1178 prohibiting the transportation of gambling devices.
[Sections 2004.003-2004.050 reserved for expansion]
SUBCHAPTER B. ADMINISTRATION
Sec. 2004.051. POWERS AND DUTIES OF COMMISSION AND
EXECUTIVE DIRECTOR. (a) The commission and executive director,
consistent with the applicable gaming compact entered into under
Subchapter D, have broad authority and shall exercise strict
control over and closely monitor casino gaming in this state to
protect the public health, welfare, and safety and ensure
integrity, security, honesty, and fairness in the conduct and
administration of casino gaming.
(b) The executive director may contract with or employ a
person to perform a function, activity, or service in connection
with casino gaming as prescribed by the executive director.
(c) The commission shall as necessary to protect the public
health and safety:
(1) monitor casino gaming operations on a continuing
basis;
(2) establish standards for:
(A) the operation of casino gaming;
(B) the provision of casino gaming equipment and
services; and
(C) the establishment and maintenance of casino
gaming facilities; and
(3) inspect and examine all gaming facilities,
equipment, services, records, and operations to ensure compliance
with the standards established by the commission.
(d) The commission may demand access to and inspect,
examine, and audit all records regarding gross revenue of casino
gaming operations of an Indian tribe authorized to conduct casino
gaming under this chapter.
Sec. 2004.052. RULES AND PROCEDURES. (a) The commission
shall adopt all rules necessary to supervise casino gaming in this
state, administer this chapter, and ensure the security of casino
gaming operations in this state.
(b) The commission shall establish procedures for the
monitoring and inspection of casino gaming operations as necessary
to protect the public health, welfare, and safety and the integrity
of this state and to prevent financial loss to this state.
Sec. 2004.053. FEES. The commission shall establish the
application, certification, and certification renewal fees for
each type of certification issued under this chapter in amounts
reasonable and necessary to cover the state's costs incurred in the
administration of this chapter and the regulation of casino gaming.
Sec. 2004.054. ANNUAL REPORT. The commission shall make an
annual report to the governor, the comptroller, and the legislature
that provides a summary of casino gaming revenues and expenses for
the state fiscal year preceding the report. The report must be in
the form and reported at the time provided by the General
Appropriations Act.
Sec. 2004.055. INVESTIGATIONS. (a) The commission may
investigate a violation or alleged violation of this chapter by any
person.
(b) The Department of Public Safety may investigate a
violation or alleged violation of the penal laws of this state in
connection with the administration of this chapter, the regulation
of casino gaming, or the conduct of casino gaming by a person
authorized to operate casino gaming under this chapter.
[Sections 2004.056-2004.100 reserved for expansion]
SUBCHAPTER C. CASINO GAMING
Sec. 2004.101. AUTHORIZATION OF CASINO GAMING. Casino
gaming may be conducted in this state only:
(1) by a federally recognized Indian tribe that may be
authorized to operate casino games under Section 47a, Article III,
Texas Constitution; and
(2) on the tribe's Indian lands in this state.
Sec. 2004.102. CERTIFICATES REQUIRED. (a) A person may not
provide, maintain, manufacture, distribute, sell, or lease casino
games or casino gaming equipment or services for use in this state
unless the person holds a gaming vendor certificate issued under
this chapter.
(b) A person may not act as a casino gaming manager for a
gaming facility in this state unless the person holds a casino
gaming manager certificate issued under this chapter.
(c) Unless the person holds the required gaming employee
license, a person may not act as a gaming employee in any gaming
employee position for which the commission by rule requires a
person to hold a certificate issued under this chapter.
Sec. 2004.103. GAMING VENDOR CERTIFICATE. (a) The
commission shall issue a gaming vendor certificate to an eligible
person with the resources and experience required to provide casino
games or casino gaming equipment and services for casino gaming
operations authorized under this chapter.
(b) The commission by rule shall establish the minimum
qualifications for a gaming vendor certificate to ensure a
competitive market for casino gaming equipment and services and the
availability of reliable casino gaming equipment and services,
consistent with the health and safety of the public.
Sec. 2004.104. CASINO GAMING MANAGER CERTIFICATE. (a) The
commission shall issue a casino gaming manager certificate to an
eligible person with the qualifications and experience required to
manage casino gaming operations under this chapter.
(b) The commission by rule shall establish the minimum
qualifications for a casino gaming manager certificate necessary to
protect the health and safety of the public.
Sec. 2004.105. GAMING EMPLOYEE CERTIFICATE. The commission
by rule and as necessary to protect the health and safety of the
public may establish other gaming employee positions that require a
certificate issued under this chapter to act in those positions.
Sec. 2004.106. BACKGROUND INVESTIGATIONS. (a) Before
issuing a certificate to a person under this chapter, the
commission shall conduct a background investigation that includes
obtaining criminal history record information of the person seeking
the certificate to assist the commission in determining the
person's eligibility or suitability for the certificate.
(b) The Department of Public Safety may enter into an
agreement with an Indian tribe to conduct background investigations
for the tribe related to casino gaming.
[Sections 2004.107-2004.150 reserved for expansion]
SUBCHAPTER D. COMPACT
Sec. 2004.151. COMPACT WITH FEDERALLY RECOGNIZED INDIAN
TRIBE. (a) As authorized by Section 47a, Article III, Texas
Constitution, notwithstanding any other law, the chairman of a
federally recognized Indian tribe may execute a gaming compact
containing the terms set forth in Subsection (b) on receipt of a
duly enacted resolution of the governing body of the tribe
authorizing the chairman to execute the compact and on submission
of a copy of the resolution to the secretary of state. The
secretary of state is not required to take any further action before
the gaming compact becomes effective. The executed gaming compact
between the state and the tribe is intended to fulfill tribal-state
compact requirements under the Indian Gaming Regulatory Act (25
U.S.C. Section 2710(d)). The tribe is responsible for submitting a
copy of the executed agreement to:
(1) the Texas secretary of state; and
(2) the United States secretary of the interior for
approval and publication in the Federal Register.
(b) The gaming compact described by Subsection (a) must be
in substantially the following form:
GAMING COMPACT BETWEEN [Insert name of TRIBE]
AND THE STATE OF TEXAS
This Compact is entered into between [insert name of Tribe],
a federally recognized Indian Tribe, and the State of Texas,
authorizing the operation of casino games (as defined herein) on
the Tribe's Indian lands as defined in Part III of this Compact.
PART I. TITLE
This document shall be referred to as the "[Insert name of
Tribe] and State of Texas Gaming Compact."
PART II. RECITALS
1. The Tribe is a federally recognized tribal government
with sovereign powers and rights of self-government.
2. The State is a state of the United States possessing the
sovereign powers and rights of a state.
3. The State and the Tribe maintain a
government-to-government relationship, and this Compact will
foster mutual respect and understanding between those governments.
4. The Tribe and the State jointly intend to protect the
integrity of gaming regulated under this Compact.
5. The gaming under this Compact will further the purposes
of promoting tribal economic development, self-sufficiency, and
strong tribal government.
PART III. DEFINITIONS
In this Compact:
A. "Commission" means the Texas Lottery Commission, which
is the state governmental agency authorized to carry out the
State's regulatory responsibilities under this Compact, or another
state agency the State authorizes to carry out the State's
regulatory responsibilities under this Compact.
B. "Compact" means this gaming compact between the Tribe
and the State.
C. "Casino Game" or "Casino Gaming Activity" means any game
that involves the making of a bet, as defined by Section 47.01,
Penal Code, for consideration, including a banking or percentage
game played with cards, dice, or a mechanical, electromechanical,
or electronic device or machine for money, property, checks,
credit, or a representative of value. The term includes roulette,
blackjack, craps, poker, slot machines, any other electronic games
of chance, and any other casino game permitted by State law for any
person.
D. "Covered Gaming Employee" means an individual employed
and licensed by the Tribe whose responsibilities include providing
services related to the operation, maintenance, or management of
Casino Games. The term includes:
1. managers and assistant managers;
2. accounting personnel;
3. surveillance and security personnel;
4. cashiers, supervisors, and floor personnel;
5. cage personnel; and
6. any other employee whose employment duties require
or authorize access to restricted areas of a facility.
E. "Covered Gaming Vendor" means a person who provides,
maintains, manufactures, distributes, sells, or leases casino
gaming equipment and services to a Casino Gaming Operation.
F. "Document" means a book, a record, an electronic,
magnetic, or computer media document, or other written material.
G. "Effective Date" means the date on which the Compact
becomes effective under Part XIII.A. of this Compact.
H. "Casino Gaming Facility" means a building or buildings of
the Tribe in which a Casino Game authorized by this Compact is
conducted on the Tribe's Indian lands.
I. "Casino Gaming Manager" means a person licensed pursuant
to this Compact to manage a Casino Gaming Operation at a location
authorized to conduct Casino Gaming in the State.
J. "Casino Gaming Operation" means the tribal business
enterprise that offers and operates Casino Games.
K. "Department" means the Department of Public Safety of the
State of Texas.
L. "Gross Gaming Revenue" means the total receipts from the
play of all Casino Games less all prize payouts and participation
fees.
M. "IGRA" means the Indian Gaming Regulatory Act (Pub. L.
No. 100-497).
N. "Independent Certified Public Accountant" means an
accountant licensed by the State to practice as an independent
certified public accountant.
O. "Indian lands" means:
1. land that was held in trust by the United States on
January 1, 2011, for the benefit of the Tribe or an individual
member of the Tribe and over which the Tribe exercises governmental
power; and
2. land that is acquired by the Tribe that is not more
than five miles from the border of land described in Part III.O.1.
of this Compact.
P. "Participation Fee" means a payment made to a supplier on
a periodic basis by the Tribe for the right to lease or otherwise
offer for play a gaming device that the Tribe does not own for
authorized Casino Gaming Activity.
Q. "Patron" means a person who is on the premises of a Casino
Gaming Facility or who is entering the Tribe's Indian lands for the
purpose of playing a Casino Game authorized by this Compact.
R. "Rules" means rules adopted by the Commission or the
Tribal Regulatory Agency to implement this Compact.
S. "State" means the State of Texas.
T. "Tribal Regulatory Agency" ("TRA") means the agency
designated by the Tribe to exercise regulatory authority pursuant
to this Compact.
U. "Tribe" means the [insert name of Tribe], a federally
recognized Indian tribe.
PART IV. AUTHORIZATION AND LOCATION OF CASINO GAMES
The Tribe and State agree that the Tribe is authorized to
operate Casino Games in a Casino Gaming Facility on the Tribe's
Indian lands in accordance with the provisions of this Compact.
PART V. RULES; MINIMUM REQUIREMENTS
A. The Tribe is responsible for all duties assigned to the
Tribe and the TRA under this Compact. The TRA shall adopt any rules
necessary to implement this Compact. The rules must:
1. require licensing of Casino Gaming Facilities,
Casino Gaming Managers, Covered Gaming Employees, and Covered
Gaming Vendors;
2. establish minimum Internal Control Standards and
require the Tribe to engage an Independent Certified Public
Accountant to perform agreed procedures and to report on the Gaming
Operation's compliance with those standards;
3. establish safeguards against problem gambling;
4. require annual audits, including an audit of the
Financial Statements of the Casino Gaming Operation by an
Independent Certified Public Accountant;
5. require the posting of rules for all Casino Games;
6. prohibit underage gambling;
7. require investigation of all suspected violations
of the Compact;
8. include procedures for resolving Patron disputes;
9. include public health and safety standards that are
at least as stringent as applicable federal law; and
10. include building codes that are at least as
stringent as a building code of the State or a local government in
the area of the casino.
B. The Commission may adopt the additional rules necessary
to ensure proper implementation of this Compact, protect the public
health, welfare, and safety, preserve the integrity of the State,
the Indian tribe, and any Casino Gaming Operations on Indian lands,
and prevent financial loss to the State and the Indian tribe.
PART VI. TORT CLAIMS; LIMITED CONSENT TO SUIT
A. The Tribe shall ensure that a Patron of a Casino Gaming
Facility is afforded due process in seeking just compensation for a
tort claim for personal injury or property damage against a Casino
Gaming Facility arising out of an incident occurring at a Casino
Gaming Facility.
B. The Tribe shall maintain public liability insurance in
the amount of $5 million for the express purposes of providing
coverage for a tort claim.
C. Nothing in this section requires the Tribe to waive its
immunity from suit except to the extent of the policy limits
required by this part.
PART VII. STATE REGULATION AND ENFORCEMENT
A. The Commission may audit all records regarding Gross
Gaming Revenue of the Casino Gaming Operation, the conduct of any
Casino Game, and the Casino Gaming Operation to determine
compliance with this Compact.
B. An agent of the Commission or the Department may have,
without prior notice, unfettered access to all public areas of the
Casino Gaming Facility. A Commission or Department agent may also
have access to nonpublic areas of the Casino Gaming Facility
immediately on giving the TRA notice of the agent's arrival and
providing proper photographic identification.
C. Subject to this Compact, a Commission agent has the right
to review and request a copy of any Document of the Casino Gaming
Facility related to the conduct of a Casino Game, including the
required annual financial audit, agreed procedures report, and the
workpapers of the Independent Certified Public Accountant. The
review and copying of Documents must be during normal business
hours.
D. The Commission may investigate a violation or alleged
violation of this Compact. The Department may investigate a
violation of the penal laws of this State in connection with the
administration of this Compact or the conduct of Casino Gaming by a
person authorized to operate Casino Gaming under this Compact.
PART VIII. LICENSING
A. The TRA shall require completion of an application by any
Casino Gaming Manager, Covered Gaming Employee, or Covered Gaming
Vendor and shall conduct a background investigation of each
applicant to determine whether the applicant is suitable to be
licensed for association with the Casino Gaming Operation.
Suitability standards shall be established by rules adopted by the
TRA and shall protect the integrity of the Casino Gaming Operation
and the health and safety of the public.
B. The TRA may enter into an agreement with the Department,
pursuant to Section 2004.106, Occupations Code, to obtain criminal
history record information. The Department shall cooperate in
furnishing to the TRA that information, unless doing so would
violate any agreement the Department has with a source of the
information other than the applicant, or would impair or impede a
criminal investigation, or unless the TRA cannot provide sufficient
safeguards to assure the Department that the information will
remain confidential.
C. The Commission may require completion of an application
by any Casino Gaming Manager, Covered Gaming Employee, or Covered
Gaming Vendor and may conduct a background investigation pursuant
to state law to determine whether the Casino Gaming Manager,
Covered Gaming Employee, or Covered Gaming Vendor applicant would
be suitable to be certified for association with the Casino Gaming
Operation. The Commission and the TRA shall cooperate and share
information. On completion of the necessary background
investigation, the Commission shall issue a notice to the TRA
certifying that the Commission determined that the applicant would
be suitable, or that the applicant would be unsuitable, for
association with the Casino Gaming Operation and, if unsuitable,
stating the reasons for unsuitability. The Tribe may not employ,
continue to employ, or purchase, lease, or otherwise obtain any
gaming equipment or services from any Casino Gaming Manager,
Covered Gaming Employee, or Covered Gaming Vendor whose application
for certification or for renewal of certification has been denied
by the Commission.
D. The Casino Gaming Operation and Casino Gaming Facility
shall be licensed by the TRA and certified by the Commission in
conformance with the requirements of this Compact before the
commencement of operation and annually after commencement. Before
the initial commencement of the operation, the Commission and the
TRA shall verify compliance with this requirement through a joint
pre-operation inspection and shall issue a license or
certification, as appropriate.
E. The Commission shall establish application and
certification fees in amounts reasonable and necessary to cover the
State's costs incurred in the administration of this Compact.
PART IX. PAYMENTS TO THE STATE OF TEXAS
A. In consideration of the substantial exclusivity
established under this agreement, the Tribe agrees to pay the State
a fee derived from the operation of Casino Games in an amount equal
to eight percent of the Gross Gaming Revenue received by the Tribe
in a calendar year from the play of the Casino Games. The fee is due
and payable not later than the 20th day after the last day of the
preceding quarter for the revenue received by the Tribe in the
preceding quarter and shall be made to the comptroller of public
accounts of the State of Texas. The Tribe may direct that, of the
eight percent total annual fee, the percentage authorized by
Chapter 2004, Occupations Code, be paid by the Tribe to local
governments for government services that benefit the general
public, including public safety, mitigation of the impacts of
gaming, or promotion of commerce and economic development.
B. If after the effective date of this Compact state law
changes to allow the operation of video lottery terminals, slot
machines, or any other forms of Casino Gaming by any person at a
location within 70 miles of the Tribe's Indian lands as of the date
of the Compact, the Tribe may cease payments under the revenue
sharing provisions required under Part IX.A. of this Compact.
PART X. DISPUTE RESOLUTION
A dispute under this Compact shall be resolved according to
the following procedures:
A. A party asserting noncompliance shall serve written
notice on the other party, identifying the provision in dispute and
the factual basis for the claim. Representatives of the Tribe and
State shall meet in an effort to resolve the dispute not later than
the 30th day after the date of receipt of notice.
B. If the parties are unable to resolve a dispute through
the process under Part X.A. of this Compact, notwithstanding any
other provision of law, the State or Tribe may bring an action in a
federal district court regarding the dispute in a district in which
the federal court has venue. If the federal district court declines
to exercise jurisdiction, the State or the Tribe may bring the
action in state court.
C. For purposes of an action based solely on a dispute
between the State and the Tribe that arises under this Compact and
the enforcement of any judgment resulting from the action, the
State and the Tribe expressly waive the right to assert sovereign
immunity from suit and from enforcement of any judgment, and
consent to be sued in all levels of federal or state court, provided
that:
1. the dispute is limited solely to issues arising
under this Compact;
2. the action does not include a claim for monetary
damages, other than payment of any money required by the terms of
this Compact, and injunctive relief or specific performance
enforcing a provision of this Compact requiring the payment of
money to the State may be sought; and
3. nothing in this Compact may be construed to
constitute a waiver of the sovereign immunity of the State or the
Tribe with respect to a third party that is made a party or
intervenes as a party in such action.
D. In the event that intervention, joinder, or other
participation by a third party in any action between the State and
the Tribe would result in the waiver of the State's or the Tribe's
sovereign immunity to the third party's claim, the waiver of the
State or the Tribe under this Compact may be revoked.
PART XI. FEDERAL APPROVAL
A. If at any time the Tribe is subject to IGRA, this Compact
is intended to meet the requirements of the IGRA on the effective
date of this Compact. Changes to the IGRA after the effective date
of this Compact that diminish the rights of the State or Tribe may
not be applied to alter the terms of this Compact, except to the
extent that federal law mandates that retroactive application
without the respective consent of the State or Tribe. If at any
time during the term of this Compact the Tribe becomes subject to
IGRA, this Compact shall be automatically converted to a
tribal-state Compact under 25 U.S.C. Section 2710(d).
PART XII. NOTICES
A notice required under this Compact must be given by
certified mail, return receipt requested, commercial overnight
courier service, or personal delivery, to:
Texas Secretary of State
Capitol Building
1100 Congress
Austin, TX 78701
[Insert Title of Tribal Official]
[Insert name of Tribe]
[Insert street address of Tribe]
[Insert city, state, Zip Code of Tribe]
With copies to the general counsel for each party.
PART XIII. EFFECTIVE DATE AND TERM
A. This Compact is effective on due execution of the Tribe,
and if applicable, on approval of the United States Secretary of the
Interior as a tribal-state compact under the IGRA either by
publication of the notice of approval in the Federal Register or by
operation of law under 25 U.S.C. Section 2710(d)(8)(C).
B. This Compact has a term of 25 years beginning on the first
day of the month following the month in which the Compact becomes
effective under Part XIII.A. of this Compact.
PART XIV. AMENDMENT OF COMPACT
This Compact may be amended on the written agreement of the
parties. The Texas Secretary of State is authorized to agree to
amendments that are not inconsistent with the purposes of this
Compact.
PART XV. EXECUTION
The [Insert title of Tribal Official] of the [Insert name of
Tribe] affirms that the [Insert title of Tribal Official] is duly
authorized and has the authority to execute this Compact on behalf
of the Tribe.
APPROVED:
[Insert name of Tribe] _______________
[Insert title of Tribal Official]
DATE:________________________
State of Texas___________________________________________________
Texas Secretary of State
DATE:________________________
[Sections 2004.152-2004.200 reserved for expansion]
SUBCHAPTER E. REVENUE
Sec. 2004.201. REVENUE FROM INDIAN TRIBE CASINO GAMING.
(a) Except as provided by Subsection (b), a federally recognized
Indian tribe that conducts casino gaming in this state, as
authorized under Section 47a, Article III, Texas Constitution, and
this chapter, shall transfer to the commission in the manner
required by commission rule the percentage of gross gaming revenue
generated from the casino gaming that is specified by commission
rule. The commission shall determine the percentage based on the
total costs to this state and to local governments in connection
with or as a result of casino gaming operations. The percentage:
(1) may not be less than eight percent of the gross
gaming revenue; and
(2) may be assessed in accordance with the category of
casino game from which the gross gaming revenue is derived.
(b) A compact under Section 2004.151 must provide for the
commission to receive not less than eight percent of the gross
gaming revenue generated from casino gaming operated under the
compact.
Sec. 2004.202. STATE CASINO GAMING ACCOUNT. The state
casino gaming account is a special account in the general revenue
fund. The account consists of all revenue received by the
commission from casino gaming, fees received under this chapter,
and all money credited to the account from any other fund or source
under law.
[Sections 2004.203-2004.250 reserved for expansion]
SUBCHAPTER F. OFFENSES; PENALTIES
Sec. 2004.251. MANIPULATION OR TAMPERING. (a) A person
commits an offense if the person intentionally or knowingly
manipulates the outcome of a casino game, the amount of a casino
game prize, or the operation of a casino gaming device by physical,
electronic, or other means, other than in accordance with
commission rules.
(b) An offense under this section is a felony of the third
degree.
Sec. 2004.252. SALE OF CASINO GAME TO PERSON YOUNGER THAN 18
YEARS OF AGE. (a) A casino gaming manager or an employee or agent
of a casino gaming manager or an employee, agent, or member of an
Indian tribe commits an offense if the person intentionally or
knowingly:
(1) sells or offers to sell a play of a casino game to
an individual the person knows is younger than 18 years of age or
permits the individual to purchase a play of a casino game; or
(2) pays money or issues a credit slip or other
winnings for a play of a casino game to an individual the person
knows is younger than 18 years of age.
(b) An individual who is younger than 18 years of age
commits an offense if the individual:
(1) purchases a play of a casino game;
(2) accepts money, a credit slip, or other payment of
winnings for play of a casino game; or
(3) falsely represents the individual to be 18 years
of age or older by displaying evidence of age that is false or
fraudulent or misrepresents in any way the individual's age in
order to purchase a play of a casino game.
(c) An offense under Subsection (a) is a Class B
misdemeanor.
(d) An offense under Subsection (b) is a misdemeanor
punishable by a fine not to exceed $250.
Sec. 2004.253. DISCIPLINARY ACTION. (a) The commission
may refuse to issue a certificate or may revoke, suspend, or refuse
to renew a certificate or may reprimand a certificate holder for a
violation of this chapter, other state law, or a rule of the
commission.
(b) If the commission proposes to take action against a
certificate holder or applicant under Subsection (a), the
certificate holder or applicant is entitled to notice and a
hearing.
(c) The commission may place on certificate probation
subject to reasonable conditions a person whose certificate is
suspended under this section.
(d) The commission may summarily suspend a certificate
issued under this chapter in the same manner as the commission is
authorized to suspend a license under Section 466.160, Government
Code, if the commission determines that the action is necessary to
maintain the integrity, security, or fairness of casino gaming.
(e) The commission by rule shall develop a system for
monitoring a certificate holder's compliance with this chapter.
Sec. 2004.254. ADMINISTRATIVE PENALTY. (a) The commission
may impose an administrative penalty against a person who violates
this chapter or a rule or order adopted by the commission under this
chapter in the same manner as the commission is authorized to impose
an administrative penalty under Subchapter M, Chapter 2001.
(b) The amount of the administrative penalty may not exceed
$1,000 for each violation. Each day a violation continues or occurs
may be considered a separate violation for purposes of imposing a
penalty.
(c) In determining the amount of the penalty, the executive
director shall consider:
(1) the seriousness of the violation, including the
nature, circumstances, extent, and gravity of the violation;
(2) the history of previous violations;
(3) the amount necessary to deter future violations;
(4) efforts to correct the violation; and
(5) any other matter that justice may require.
(d) The notice, hearing, and appeal for an administrative
penalty assessed under this section shall be provided or conducted
in the same manner as notice, hearing, and appeals are provided or
conducted under Subchapter M, Chapter 2001.
Sec. 2004.255. CIVIL PENALTY. (a) A person who violates
this chapter or a rule adopted by the commission under this chapter
is liable to the state for a civil penalty not to exceed $5,000 for
each day of violation.
(b) At the request of the commission, the attorney general
shall bring an action to recover a civil penalty authorized by this
section. The attorney general may recover reasonable expenses,
including attorney's fees, incurred in recovering the civil
penalty.
SECTION 2. Section 47.02(c), Penal Code, is amended to read
as follows:
(c) It is a defense to prosecution under this section that
the actor reasonably believed that the conduct:
(1) was permitted under Chapter 2001, Occupations
Code;
(2) was permitted under Chapter 2002, Occupations
Code;
(3) was permitted under Chapter 2004, Occupations
Code;
(4) consisted entirely of participation in the state
lottery authorized by [the State Lottery Act (]Chapter 466,
Government Code[)];
(5) [(4)] was permitted under the Texas Racing Act
(Article 179e, Vernon's Texas Civil Statutes); or
(6) [(5)] consisted entirely of participation in a
drawing for the opportunity to participate in a hunting, fishing,
or other recreational event conducted by the Parks and Wildlife
Department.
SECTION 3. Section 47.09, Penal Code, is amended by
amending Subsection (a) and adding Subsection (c) to read as
follows:
(a) It is a defense to prosecution under this chapter that
the conduct:
(1) was authorized under:
(A) Chapter 2001, Occupations Code;
(B) Chapter 2002, Occupations Code; [or]
(C) Chapter 2004, Occupations Code; or
(D) the Texas Racing Act (Article 179e, Vernon's
Texas Civil Statutes);
(2) consisted entirely of participation in the state
lottery authorized by Chapter 466, Government Code; or
(3) was a necessary incident to the operation of the
state lottery and was directly or indirectly authorized by:
(A) Chapter 466, Government Code;
(B) the lottery division of the Texas Lottery
Commission;
(C) the Texas Lottery Commission; or
(D) the director of the lottery division of the
Texas Lottery Commission.
(c) Subsection (a)(1)(C) applies to a person manufacturing,
possessing, or operating a gambling device under a certificate or
other authorization under Chapter 2004, Occupations Code.
SECTION 4. Chapter 47, Penal Code, is amended by adding
Section 47.095 to read as follows:
Sec. 47.095. INTERSTATE OR FOREIGN COMMERCE DEFENSE. It is
a defense to prosecution under this chapter that a person sells,
leases, transports, possesses, stores, or manufactures a gambling
device with the authorization of the Texas Lottery Commission under
Chapter 2004, Occupations Code, for transportation in interstate or
foreign commerce.
SECTION 5. (a) Not later than December 31, 2011, the Texas
Lottery Commission shall adopt the rules necessary to implement
casino gaming in accordance with Chapter 2004, Occupations Code, as
added by this Act.
(b) The Texas Lottery Commission may adopt initial rules for
purposes of implementing casino gaming in accordance with Chapter
2004, Occupations Code, as added by this Act, that expire not later
than May 1, 2012. Chapter 2001, Government Code, does not apply to
the adoption of those rules. This subsection expires June 1, 2012.
SECTION 6. This Act takes effect December 15, 2011, but only
if the constitutional amendment authorizing the operation of casino
games in this state by federally recognized Indian tribes on
certain land is approved by the voters. If that amendment is not
approved by the voters, this Act has no effect.